Joan Burton (Dublin West, Labour)

Has the Minister seen a report in the October 2006 issue of the Irish Property Buyer which includes an analysis of the impact of interest rate increases on average mortgage repayments? Between July 2005 and December 2006 the average monthly mortgage repayment, due to interest rate increases, will have risen by over 50%. The figures show average repayments increasing from €1,057 to €1,573 for all buyers nationally, from €926 to €1,390 for all first-time buyers and from €1,453 to €2,167 for all Dublin buyers, who comprise approximately 49% of the total mortgage market. In view of the outlook from the European Central Bank and given that people also have financial commitments regarding child care and high commuting costs, does the Minister believe such figures are sustainable? Is the Minister concerned about the type of monthly bills sustained by people trying to provide a home for their families?

The Central Bank referred to investors in its report. It said that investors, unlike owner occupiers, pose a risk to the stability of the market in so far as they might attempt to exit the market at short notice. The CSO and property economists have suggested that between 8% and 15% of Irish houses are unoccupied. Is that not a worrying trend?

Our total indebtedness has reached €300 billion. That is equivalent to 205% of GNP. It is extremely high in comparison to other countries and it is growing all the time. Do any of these issues concern the Minister as he frames the budget?

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